The pound remained near a two-week low this morning, and investors said
more losses were likely if Prime Minister Theresa May’s proposed Brexit deal
gets voted down again next month.

Sterling has fallen 1% this month as deadlocked cross-party talks exposed deep
political divisions over how, when and even if Brexit should take place.

May’s spokesman said late on Tuesday she planned to put forward her
thrice-rejected Brexit deal in the week beginning June 3, to try to secure an
agreement before lawmakers go on summer holiday.

Speculation is growing that May will soon be ousted and that is weighing on the
pound.
Failure to pass the deal [in June] could well see May finally step down,
opening the door for a more Eurosceptic prime minister.

Sterling was trading 0.1% higher at $1.2916 and flat against the euro at 86.80
pence. It has fallen for seven consecutive days against the dollar despite
mostly solid economic data in Britain in recent months.

The worry for investors is that months of inventory stockpiling by British
companies before Brexit will show up this quarter.